House prices to see an upturn next year

While there's little chance house prices will grow much, if at all, during the remainder of this year, a new report suggests 2013 will see the beginning of a modest turnaround in property prices.

Australian house prices have fallen two per cent in the June quarter, according to the National Australia Bank’s latest residential property survey.

Of the 300 agents and real estate professionals surveyed by the bank, the majority claimed that there was no sign of a property market revival in the near future.

Respondents tip national house prices will be 1.5 per cent lower by the end of 2012, compared with prices at June 30.

For the year to June 2013, however, agents said they expect prices to edge higher, advancing one per cent in the year to June 2014.

There will be marked differences between the states, however, with mining-endowed Queensland and Western Australia fairing much better than NSW and Victoria.

The report forecasts that Victorian prices will drop 2.9 per cent over the coming six months before taking the full-year loss to 2.1 per cent by June next year. NSW, too, can expect property prices to be 1.9 per cent lower by the end of the year before a pick-up in the first half of 2013

By contrast, WA's house prices are likely to rise 0.5 per cent in the current half, and should be 1.6 per cent higher by June 2013.